Bajaj Allianz

INDEX

Chapter Name No.

1. Introduction

2. Research Methodology

3. Working of Company

4. Problems & suggestions

5. Conclusions

PREFACE

For a management student theoretical knowledge as well as practical

orientation expose on self to experience, one can again be mastering it is

best possible time.

BBA curriculum has been finding turned in such way that a student

not apply the theoretical knowledge but also gain it in a practical sense. Thus

objective can be attained thought application of theory tools concept &

techniques of management.

Balanced, theoretical & practical knowledge are essential for every

student is conceived in such a way so as to facilitates practical purpose.

To procure objective the research under to the project “A STUDY ON

RECRUITMENT OF FINANCIAL ADVISORS IN THE BAJAJ ALLIANZ

LIFE INSURANCE COMPANY LIMITED”.

Secondary data were collected from websites, and journal of Bajaj

Allianz Life Insurance Company Limited.

Researcher has tried to satisfy the topic of report by help of facts &

finding.

ACKNOWLEDGEMENT

It gives me immense pleasure to present the project on “Study on how to

recruit the financial advisor” in Bajaj Allianz Life Insurance Company. It

was a totally different & wonderful experience to be there in BAJAJ

ALLIANZ COMPANY, UDAIPUR as a summer trainee.

The researchers express his sincere gratitude to Mr. Hemant Joshi,

Deep Bhatnager & Amit Mathur (Sales manager) his project guide who

has been so co-operative & helpful from the first day of training till end.

He also helped him a lot in enhancing knowledge about the technicalities of

insurance sector.

The researcher confesses deep sense of gratitude towards my parents

as well as my friends or Sir for their constant encouragement and timely

suggestion.

In all it was a great experience of working on this project.

Executive Summary

The main focus of my project was on “HOW TO RECRUIT FINANCIAL

ADVISOR IN BAJAJ ALLIANZ LIFE INSURANCE COMPANY” In this

project I highlighted what are the insurance products, what are the

plans? What are the benefits and how so sell them?

The methodology adopted by us in selling insurance products was first

segment to approach to natural market that is to relatives, Friends or

Sir etc. Then next is approach their references and finally to other

unknown and common people.

After taking a prior appointment we approached them,

interviewed them and selected them keeping in mind the criteria as per

the company’s requirement IRDA guidelines and also some soft

attributes, which were required to be financial advisor, we also have

discussed the concept of financial advisor.

To sum up, there has been sustained efforts and dedication

involve to make this study a comprehensive market study but at the

same time the researcher is open to any kind of suggestion that further

needs to be considered in respect of the cause of his work.

INTRODUCTION OF INSURANCE

Insurance is an integral part of everyone’s life in present scenario.

Insurance or assurance is a device for indemnifying or guaranteeing an

individual against loss. Reimbursement

Is made from a fund to which many individuals exposed to the same risk have

contributed certain specified amounts, called “PREMIUMS”. Payments for an

individual loss, divided among many, do not fall heavily upon the actual loser. The

essence of the contract of insurance, called a “POLICY” is mutuality.

The entity that is transferring the risk, which may be an individual or association of

any type, including a government or government agency-, is called “INSURED”.

The entity accepting the risk is called the “INSURER”. The agreement between the

two by which the risk is transferred is called the “POLICY”. This is a legal contract

that sets out exactly the terms and conditions of the coverage. The fee paid by the

insured to the insurer for assuming the risk is called “PREMIUM”. This is usually

determined by the insurer to fund estimated future claims paid, administrative costs

and profits.

The major operations of an insurance company are underwriting, the determination

of which risks the insurer can take on; and rate making, the decisions regarding

necessary prices for such risks. The underwriter is responsible for guarding against

adverse selection, wherein there is excessive coverage of high risk candidates in

proportion to the coverage of low risk candidates. In preventing adverse selection,

the underwriter must consider physical, psychological, and moral hazards in relation

to applicants. Physical hazards include those dangers, which surround the individual

or property, jeopardizing the well being of the insured. The amount of the premium

is determined by the operation of the law of averages as calculated by the actuaries.

By investing premium payments in a wide range of revenue-producing projects,

insurance companies have become major suppliers of capital and they rank among

the nation’s largest institutional investors.

BAJAJ ALLIANZ

THE COMPANY

BAJAJ Allianz Life Insurance Company is a joint venture between two

leading conglomerates, Bajaj Auto Limited, one of largest manufactures of

motorcycles and scooters in the world, and Allianz AG of Germany one of

the largest insurance companies. Bajaj Allianz Life Insurance Co. Ltd. was

incorporated on 12th March 2001. The company received the Insurance

Regulatory and Development Authority (IRDA) certificate of Registration

(R3) No 116 on 3rd August 2001 to conduct Life Insurance business in

India.

Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj

Auto Limited and Allianz AG of Germany holding 74% and 26% stake

respectively. It is the largest private player in the Insurance Industry in

India with a market share of around 34% amongst the private companies

and second to LIC. The total market share of Bajaj Allianz as of 31 st March

2006 is at 12%.

During the financial year 2005-2006, Bajaj Allianz has sold over 13 lakh

policies and collected about Rs. 4433 crore as premium income. Whopping

growth of 216% for the FY 2005-06, Assets under management of Rs. 3324

Crore. It has paid up Rs 925 crores with IRDA as a caution deposit. Bajaj

Allianz has insured lives for sum assure of over Rs 8500 crore.

Bajaj Auto Limited

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is

the largest manufacturer of two-wheelers and three-wheelers in India and

one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand

loyalty synonymous with quality & customer focus. With over 15,000

employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-

wheeler manufacturer in India and the 4th largest in the world. AAA rated

by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined

hands with Allianz to provide the Indian consumers with a distinct option in

terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the

following to offer -

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

A 10 million strong base of retail customers using Bajaj products.

Advanced Information Technology in extensive use.

Experience in the financial services industry through Bajaj Auto

Finance Ltd

Allianz AG

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with

almost 174,000 employees. At the top of the international group is the

holding company, Allianz AG, with its head office in Munich.

Allianz AG is in the business of General (Property & Casualty) Insurance;

Life & Health Insurance and Asset Management and has been in operation

for over 110 years. Allianz is one of the largest global composite insurers

with operations in over 70 countries. Further, the Group provides Risk

Management and Loss Prevention Services. Allianz has insured most of the

world's largest infrastructure projects (including Hongkong Airport and

Channel Tunnel between UK and France), further Allianz insures the

majority of the fortune 500 companies, besides being a large industrial

insurer, Allianz has a substantial portfolio in the commercial and personal

lines sector, using a wide variety of innovative distribution channels.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -

AUM of Rs.51,96,959 cr.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

New Unit Gain Plus

It is a unit linked plan of Bajaj Allianz that takes care of a person’s wealth

by providing flexibilities in savings and investments and options for

protection needs.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium

of:

Rs 15000/- p.a. for annual mode.

Rs 7500/- p.a. for half-yearly mode.

Rs 5000/- p.a. for quarterly mode.

TITLE OF THE STUDY: MARKET CREDIBILITY OF BAJAJ ALLIANZ

AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES.

OBJECTIVES:

Working of the unit-linked plans.

Comparative analysis of the life insurance products available in the market.

Research methodology used : Primary data collected by visiting the leading life insurance companies like LIC, ICICI Prudential, Aviva, Birla Sun Life Insurance, HDFC Standard Life, Tata AIG Educare, OM KOTAK Mahindra.

Data Collection:

(a)Questionnaires filled by various income groups.(b)Internet (by searching about the investment plans of other

companies).

Action plan:

(a)Firstly, collecting information from newspapers & magazines like Economic Times, Financial Express, Business India, The Times Of India, Internet.

(b)Secondly, getting the questionnaires filled (about 50) to find out which company they prefer for life insurance policies, what are the specific features of their policies, whether they treat insurance as an investment option or a security option.

(c) Finally, analyzing the data collected and comparing the insurance companies to show the market credibility of BAJAJ Allianz among other private life insurance companies.

RESEARCH METHODOLOGY:-

MEANING OF RESEARCH: -

Research is an art of scientific investigation.

Research means “a careful investigation or inquiry specially through search

for new facts in any branch of knowledge.”

According to Clifford Woody: -

“Research comprises defining and redefining problems,

formulating, hypothesis or suggested solutions, collecting, organizing and

evaluating data, making deductions and reaching conclusions and at last

carefully testing the conclusions to determine whether they fit the

formulating hypothesis”.

Research means the systematic method consisting of

enunciating the problem, formulating a hypothesis, collecting the facts or

data, analyzing the facts and reaching certain conclusions either in form of

solutions towards the concerned problem or in certain generalization for

some theoretical formulation.

The project titled, as “MARKET CREDIBILITY OF BAJAJ ALLIANZ

AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES”

required research to be done. The market credibility required the collection

of Primary Data as well as the Secondary data. The credibility literally

means the market value and the market positioning of a particular brand or a

company among its competitors. BAJAJ Allianz is one of the private life

insurance companies, which came into existence in 2001. Market credibility

can be checked by seeing the awareness of people about a particular

company and its share in the market. Comparing the products of term

policies as well as the endowment policies.

Primary data : Questionnaire filled by people interviewed.

Secondary data: (i) Data collected for companies from various

sites available of the life insurance companies.

(ii) Data collected from newspapers and NAVs

of the various policies of BAJAJ Allianz and other

private life insurance companies.

OBJECTIVES OF RESEARCH

1. To gain familiarity with a phenomenon or to achieve new insights

into it.

2. To portray accurately the characteristics of a particular individual

tuation or a group.

3. To determine the frequency with which something occurs or with

which it is associated with something else.

4. To test a hypothesis of a casual relationship between variables.

5. To discover answers to questions through the application of

scientific procedures.

TYPES OF RESEARCH

1. DESCRIPTIVE RESEARCH: -

It includes surveys and fact-finding enquiries of different kinds. The

main purpose of descriptive research is description of the state of affairs,

as it exists at present.

2. ANALYTICAL RESEARCH: -

Analytical research has to use facts or information already available and

analyze these to make a critical evaluation of the material.

3. APPLIED RESEARCH: -

Applied research aims at finding solution for an immediate problem

facing a society or an industrial/business organization

The certain aim of applied research is to discover a solution for some

pressing practical problem.

4. FUNDAMENTAL RESEARCH: -

It is mainly concerned with generalization and with the formulation

of a theory. Basic research is directed towards finding information that

has abroad base of application and adds to the already existing

organized body of scientific knowledge.

5. QUANTITATIVE RESEARCH: -

It is based on the measurement of quantity or amount. It is

application to phenomena that can be expressed in terms of quantity

That can be expressed in terms of quantity.

6. QUALITATIVE RESEARCH: -

It is concerned with qualitative phenomenon that is phenomenon relating to or involving quality or kind.

7. CONCEPTUAL RESEARCH: -

Conceptual research is that related to some abstract ideas or theory.

Philosophers and thinkers to develop new concept or to reinterpret

existing once generally use it.

8. EMPIRICAL RESEARCH: -

Empirical research relies on experience or observation alone, often

without due regard for system and theory. It is database research, coming

up with conclusions, which are capable of being verified, by observation

or experiment.

WORKING OF THE COMPANY:-

The premiums paid are invested in fund/funds of your choice (depending on

the allocation rate) & units are allocated depending on the price of units for

the fund/funds. The value of your policy is the total value of units that you

hold in the fund/funds. The insurance cover charges are deducted through

monthly cancellation of units. The fund Administration Charge and Fund

Management Charge are priced in the unit value.

BENEFITS

DEATH BENEFIT: In case of unfortunate death the beneficiaries are

entitled to the Sum Assured less withdrawals or the bid price of units,

whichever is higher? If the age of the life assured is less than 7 or above 70,

then the bid price of the units is paid.

LIQUIDITY OPTION: There is no maturity date for this plan. . Anytime

after payment of 3 full years’ premiums, you may withdraw the money,

depending on your requirements, through partial or complete surrender of

units.

OPTIONS

a. Choice of investment plan:

Bajaj Allianz offers you a choice of 4 funds. You can choose to invest

fully in any one fund or allocate your premiums into the various funds in

a proportion that suits your investments needs. All the funds will be

managed by the asset managers of Bajaj Allianz.

EQUITY FUND: This fund provides the scope of high

appreciation over a long term. The fund will primarily invest in

equities and is expected to match returns given by NSE NIFTY.

This fund will invest at least 90% in equities and maximum

10% in cash. This Fund Investment is in NSE (National Stock

Exchange) NIFTY i.e. top 50 companies.

DEBT FUND : This fund provides the scope for steady returns

at low risk through investments in high quality fixed income

securities. This fund will be invested fully in debt instruments.

This Fund Investment is in Govt. Bonds for e.g. IDBI Bonds,

Mutual Funds etc.

BALANCED FUND : The balanced is primarily for those who

prefer mix of steady returns and growth. The balanced fund will

invest 30% to 50% in the equity fund and 50% to 70% in the

debt fund. This Fund Investment is in Govt. and Private

Companies.

CASH FUND : The cash fund will invest conservatively in

money market & short term investments to ensure that return on

investments shall never be negative. 100% of this fund will be

invested in money market instruments. The price of the units in

this fund will never to go down. This Fund Investment is in Call

Money Market (operates on the need for cash on hourly basis).

b. Choice to switch between investment options:

Policyholder can switch units from one fund to another. The amount

switched should be in multiples of 1000, and the minimum switching

amount is Rs. 5000 or the fund value which ever is lower. Three free

switches would be allowed every year. Subsequent switches would be

charged @ 1% of the switch amount or Rs. 100 whichever is higher.

c. Choice of a Top-up:

The policyholder will have the option to increase the regular premium

amount at any time. The additional single premium would be treated as a

single premium top-up every year. The policyholder will also have the

option to increase the amount invested through top-ups.

FLEXIBILITIES

a. Increase the death benefit:

The death benefit may be increased without any underwriting every 3rd

year upto 4 times. The increase will be allowed upto 25% of the original

sum assured or Rs. 1,00,000. Whichever is lower, each time? However,

the maximum age till which this option will be allowed is the attained

age of 45yrs of the policy holder. Apart from the increase in death benefit

every 3rd year without underwriting, the policyholder may choose to

increase the death benefit subject to the maximum of Comprehensive

Accidental Protection, depending on his/her changing needs. This

increase will be subject to underwriting and the cost of underwriting shall

be deducted through cancellation of units. The option to increase the

death benefit with underwriting ceases at age 60.

b. Decrease the death benefit:

Decrease in the death benefit will be allowed any time, subject to the

minimum death benefit being maintained. The death benefit once reduced

can be increased subsequently only subject to underwriting.

c. Premium holiday option:

Customers can opt to pay premiums at their convenience after payment

of full 3years premiums. Thereafter, when premium due are not paid, the

policy will stay in force with full benefits so long as there is enough units

available for charging the cost of insurance and additional benefits after

deducting all applicable charges.

d. Flexible Contribution:

The person can increase/decrease the annual contribution. The maximum

decrease in the contributions can be upto 20% of the initial contribution

chosen by the person at the time of inception of the policy. However, in

no circumstances can the contribution be reduced to below the minimum

premium allowed under the plan at that time, or 80% of the initial chosen

contribution, whichever is higher. The person has the flexibiltity to

increase his/her contribution without any limits. Any such increase or

decrease in contribution will only be allowed on policy anniversaries.

OTHER BENEFITS

a. Additional Protection for You and Your Family:

You have the option to add the following four additional benefits,

providing total protection against uncertainties.

Accidental Death Benefit.

Accidental Permanent Total/Partial Disablement Benefit.

Critical Illness Benefit (CI).

Hospital Cash Benefit (HC).

b. Surrender value

This policy acquires a surrender value after 3 complete years of the

policy, provided the 1st 3 years’ premiums are paid. The Surrender Value

is 100% of the value of investments.

c. Tax Benefits

Value of Units cancelled for Critical Illness and Hospital Cash Benefit

is eligible for tax relief under Section 80(D). Death Benefit and

Withdrawals (partial or full) is tax free under section 10(10) D of the

Income Tax Act, if the premiums paid in any year does not exceed

20% of the Sum Assured or Fund Value, whichever is higher. Incase

of change in any tax laws relevant to the policyholder or the fund

performance, the same will be applied as per regulations prevailing at

the point of time.

AGE LIMITS

Age at entry:

Minimum age of entry: 0 years (Completed years)

Maximum age of entry: 60 years (Completed years)

CHILD CARE

Taking care of a child is perhaps the most important job a parent can have. It

is but natural that you would like to give your child your best, and therefore,

this is the time when careful financial planning can help you fulfill the

aspirations that you have for your children. The Bajaj Allianz “Child Care”

Solutions help you to enjoy the joys of parenthood responsibly, with the

reassurance of a secure future for your child.

CHILD CARE PLAN OFFERS

Child Care plan is a children money back plan with profit. Bajaj Allianz

Child Care offers a wide array of solutions that allows you to plan for your

child’s future by providing you with as many as 4 distinct and unique

options.

1. Child Care 21

2. Child Care 24

3. Child Care 21 Plus

4. Child Care 24 Plus

START OF LIFE BENEFIT

This is a unique feature of Bajaj Allianz “Child Care” 21 Plus & 24 Plus.

These packages offer you the choice of providing a unique Start of Life

Benefit for your child. For a nominal amount, an additional Sum Assured

subject to a maximum limit of Rs.10 Lacks will become payable to enable

the child start hi/her professional life smoothly, in case of an unfortunate

death or Accidental Permanent Total Disability of the Policy holder during

the term of the policy. This benefit will not be available in the event of

accidental permanent total disability after age 65 of the policy holder.

IN-BUILT BENEFITS

A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of the

policyholder during the premium payment term, all future premium

payments are waived. This benefit will not be available in the event of

accidental permanent total disability after age 65 of the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the policy

holder during the term of the policy, a monthly income benefit of 1% of

the sum assured (12% per annum) becomes payable till the end of the

policy term (subject to a maximum of Rs. 1,20,000 per annum). This

benefit will not be available in the event of accidental permanent total

disability after age 65 of the policy holder.

C) OPTION TO PURCHASE FURTHER INSURANCE AT

MATURITY:

For ensuring continuity of the valuable insurance protection that the child

was enjoying, we offer the child and option to purchase a with profits

endowment or an equivalent plan from Bajaj Allianz Life Insurance

Company for twice the amount of face value of this policy, without any

medical examination, on the premium rates prevailing at that time. (The

application must be made at least 6 months prior to maturity of this

policy).

PAYOUT STRUCTURE

For Child Care 21 and Child Care 21 Plus: The minimum guaranteed

payouts are as follows:

Policy Anniversary following completion

of Age 18 19 20 21

Payout as % of Sum Assured 20% + Accrued

Bonuses 25% 25% 35%

For Child Care 24 and Child Care 24 Plus: The minimum guaranteed

payouts are as follows:

Policy Anniversary following

completion of Age 18 20 22 24

Payout as % of Sum Assured 25% + Accrued

Bonuses 25% 25% 40%*

* refers to probable increase in payout based on higher interest during the

payout period.

DEATH PAYOUT

In the event of unfortunate death of the child during the policy terms, the

payouts shall be as under

Age Payout

Below 7 years Premiums paid will be refunded without interest and the policy will terminate.

Above 7 years and below 18 years

Sum assured with accrued bonuses will be paid and the policy will terminate.

Above 18 years and below 24 years

Outstanding payouts will be paid as one lump sum and the policy will terminate.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium of:

Rs. 5000/- p.a. for annual mode.

Rs. 2500/- p.a. for half-yearly mode.

Rs. 2000/- p.a. for quarterly mode.

Rs. 700/- p.a. for monthly mode.

AGE LIMITS

Eligibility Conditions Child Care 21 and Child Care 21 Plus

Child Care 24 and Child Care 24 Plus

Minimum age of the policyholder

20 20

Maximum age of policyholder

50 50

Minimum age of child 0 0

Maximum age of child 13 13

Minimum Premium Rs.4850 Rs.4850

Minimum Premium Payment Term

5 5

Maximum Premium Payment Term

18 18

Maximum age of child at maturity

21 24

Maximum Sum Assured Rs. 50,00000 Rs. 50,00000

NEW UNIT GAIN PLUS Vs LIC BIMA PLUS

FEATURES NEW UNIT GAIN PLUS LIC BIMA PLUS

Age 0-60 years 12-56 years

Term Choice rests with a minimum period of payment of 3 years.

10 years

Sum Assured Minimum sum assured is 5 times the premium paid. Maximum sum assured is as per the limits set per age bands.

Maximum limit up toRs. 2 lakhs.

Survival Benefit Value of Fund at Bid Price Bid value of the fund units

along with maturity bonus at 5% of the Sum Assured.

Death Benefit

Higher the Sum Assured or value of units. However, the value of units will treat as death benefit if the Life Assured is > 7 years or < 70 years.

Death during the 1st 6 months- 30% of SA + value of units, next 6 months – 60% of SA + value of units. Death after 1st

year-SA +value of units. Death during the 10th year- 105% of SA + value of units.

Withdrawal Benefit

Partial or complete withdrawals at bid price after3rd year.

Premature withdrawal allowed 1 year(after applying bid-offer spread).

Contribution Minimum: Rs. 15,000 p.a Not specified.

Flexibility to increase/decrease contribution

Only an increase in contribution is allowed.

Not available.

Investment

options

Equity Fund, Debt Fund,

Balanced Fund, Cash Fund.

Balanced, Secured & Risk.

Increase/Decrease of death benefit

Available. Not available.

Bonus Points Not Available. Not available.

Top-up Available. Available (charges: 1.5% of

the top-up).

Switch 3 free switches every policy year. Subsequent switches would be charged @1% of switch amount or Rs. 100 whichever is higher.

No free switches. Cost of switches is 2% of the fund value.

Surrender Value A selling/purchase price spread of 5% will be applicable from the 3rd year onwards.

Partial surrender up to 50% of bid value of units allowed after 3 years from the date of commencement.

Automatic Cover Continuance

Available after the 3rd policy year.

Not available.

Initial charge Charges : 1st Year- 24% ; 2nd Year-3%3rd Year- 3%. No charges grom 4th year onwards.

Not disclosed

Admin charges Annual admin. Charges of 1.25% of net assets.

Other charges Transaction charge of 0.5% of the equity investment & 0.1% of the debt investments.

Not applicable.

Bid-offer spread The bid-offer spread is 5% of the offer price.

Not applicable.

Fund management Charge

Annual investment charge of 1% p.a. of net assets. 1% of the fund per annum

Riders ABR/ ADBR / CI/Hospital Cash Benefits.

In Built Accident Benefit.

CHILD CARE Vs SMART KID (ICICI Pru.

FEATURES CHILD CARE SMART KID

Plan Type Anticipated Endowment. Anticipated Endowment.

Min Max Term Matures when the child reaches the age of 21 or 24. Premium paid till child reaches age 18.

Matures between 22-25 years of child. Term is 10-25 tears.

Min Max Age

of Child

1-13 Years. 0-12 Years.

Min Max Age

of Parent


Payment

Modes

All regular premiums. All regular premiums.

Life Assured Child is insured. But premium waiver rider available for parent.

Parent.

Beneficiary Child Child.

Flexibility in benefit structure

2 structures :1. Money is paid on the 18th,

19th, 20th and 21st year (20%+25%+25%+35%)

2. Money is paid on the 18th, 2022nd or 24th year (25%+25%+25%+40%)

2 structures :1. When the child reaches the criteria milestones ( Xth, XIIth, Graduation, Post Grad.)

2. Last 4 year before maturity.

Benefit-Death of Parent

None if premium waiver rider is not purchased.

SA is paid up front. Child gets theGuaranteed payments as chosen earlier.All future premiums are waived off.

Benefit- Death of Child

< 7 years – Premiums refunded without interest >7 years & <18

Years – SA + Bonus > 18 years – Outstanding payments as a lump sum.

Policy continues as it is.

Bonus & Additions

Not guaranteed. Paid after the end of the premium paying term.

3.5% of SA compounded annually for the1st 4 years, annual bonuses declared thereafter.

Riders available

Family Income Rider/ Premium Waiver Rider.

ADBR / IBR

Surrender Value

Available after 3 premium paying years.


CHILD CARE Vs HDFC CHILD PLAN

FEATURES CHILD CARE HDFC CHILD PLAN

Plan Type Anticipated Endowment. Endowment.

Min Max Term

Matures when the child reaches the age of 21 or 24 Premium paid till child reaches age 18.

10-25 Years.

Min Max

Age of Child

0-13 Years.

Min Max Age of Parent


Payment

Modes


Life Assured Child is insured. But premium

waiver rider available for parent.

Parent.

Beneficiary Child. Child.

Flexibility in benefit

2 structures :1. Money is paid on the 18th, 19th,

The customer has to choose amongst 3 separate plans,

structure 20th and 21st year (20%+25%+25%+35%)2. Money is paid on the 18th, 20th, 22or 24th year (25%+25%+25%+40%).

with deferring premiums based on the plans.


None if premium waiver rider is not purchased.Opt for either one of the plans:

1. SA+ Bonuses paid upfront

2. SA + Bonuses paid on maturity.

3. SA paid on death & SA + Bonuses paid on maturity.



Years – SA + Bonus > 18 years – Outstanding payments as a lump sum


Bonus & Additions

Not Guaranteed. Paid after the end of the premium Paying term.

Simple Reversionary Bonuses paid till maturity.

Riders available

Family Income Rider/ Premium Waiver Rider.None.

Surrender Value

Available after 3 premium paying years. Available.

CHILD CARE Vs OM KOTAK CHILD ADVANTAGE

FEATURES CHILD CARE OM KOTAK CHILD

ADVANTAGE

Plan Type Anticipated Endowment. Endowment.

Min Max Term

Matures when the child reaches the age of 21 or 24. Premium paid till child reaches age 18.

10-30 Years.

Min Max Age of Child



20-50 Years. -

Payment Modes



Parent.


Flexibility in benefit structure

2 structures :1. Money is paid on the 18th, 19th, 20th and 21st year (20%+25%+25%+35%)2. Money is paid on the 18th, 20th, 22nd or 24th year (25%+25%+25%+40%).

One structure only. Lump sum payment made on maturity which consists of SA or accumulated bonuses, whichever is higher.

Benefit- None if premium waiver rider is not If the child is 18(then Sa or Accumulation

Death of Parent

purchased. paid, whichever is higher. Else total premium or SV is paid whichever is higher).





Bonus & Additions

Not guaranteed. Paid after the end of the premium paying term. Not guaranteed.

Riders

available

Family Income Rider/ Premium Waiver

Rider.

ADBR, WOP.

Surrender

Value

Available after 3 premium paying years. Available.

CHILD CARE Vs TATA AIG EDUCARE (18 YEARS)

FEATURES SMART KID TATA AIG EDUCARE

Plan Type Anticipated Endowment. Regular premium endowment plan- Positioned as a Child Plan.

Min Max Term

Matures when the child reaches the Age of 21 or 24. Premium paid till Child reaches age 18.

Matures when the child is 18 years of age.

Min Max Age of Child

0-13 Years. 30 days to 8 years of age.


20-50 Years. Not applicable.

Payment Modes

All regular premiums. All.


Child- till the child reaches the age 18 , the parent will be the policyholder. At 18, the policy will be transferred in the child’s name.


Flexibility in benefit

2 structures :1. Money is paid on the 18th, 19th, Single payment structure.

structure 20th and 21st year 20%+25%+25%+35%)2. Money is paid on the 18th, 20th, 22or 24th year (25%+25%+25%+40%)


None if premium waiver rider is not purchased.

Policy lapses in case payer benefit rider is not opted for.




The proceeds are paid to the parent.

Bonus & Additions

Not guaranteed. Paid after the End of the premium paying term.

Guaranteed – 10% of SA paid at maturity or death provided the policy has been in force for 10 years. Plus a guaranteed education benefit of 20% of the SA paid at the maturity.

Riders available

Family Income Rider/ Premium Waiver Rider.

Payor Benefit Rider-premium waiver.

Surrender Value


30% of the premiums paid(excluding the 1st

premium & extra premium , if any) provided 3 annual premiums have been paid in full.

FINDINGS AND ANALYSIS

There were about 10 questions in the questionnaire on the basis of which the findings were done and the analysis was made. The responses to the questions in the questionnaire are presented in the form of statistical tools such as pie charts and bar charts. There were 50 people being interviewed from different income groups and age groups.

1. Do you have a life insurance policy? If yes, then of which company/companies?

Out of the 50 insurable people interviewed nearly 72% people have taken

insurance policy. Out of this population being interviewed nearly 32 % had

LIC policy, 28 % had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max

New York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and

HDFC having 6% shares each in the interviewed population.

2. Do you see insurance policies as an investment alternative or a

security option?

Out of the 50 people interviewed 78 % people term/see insurance policy as a

security option while only 22 % see it as an investment option.

3.Please rank the following as per your preference to investment in a

financial year:

Out of 50 being interviewed, 18 people invest in life insurance policies,

16 people invest in shares, 12 people invest in mutual funds and 4 people

invest in government bonds.

4.What is your criteria/criterion to select a particular insurance

company and a scheme?

Out of 50 people being interviewed, 15 people select an insurance

company on the criterion of security, 5 people select an insurance

company on the criterion of time span, 2 people select an insurance

company on the criterion of market share, 8 people select an insurance

company on the basis of return and 20 people select an insurance

company on the basis of all the above mentioned reasons.

5. Rank the life insurance companies in the your order of preference

:

Out of 50 people interviewed, 46% had BAJAJ Allianz as their first

preference for a pvt. Life insurance company followed by ICICI

Prudential having 24 % preference followed by HDFC Life

insurance having 16% market share and lastly Max New York Life

Insurnce.

6. Do you think that private life insurance companies are as safe as

LIC for taking a policy?

Out of 50 people being interviewed, 62 % of people do not find

private life insurance companies to be safe for buying a life

insurance policy whereas 38 % people find them safe for buying a

life insurance policy from a private life insurance company.

7. BAJAJ Allianz is quite a famous company because:

Out of 50 people interviewed, 16 % people perceive policies of

BAJAJ Allianz make it a famous company while 20% think it is

due to the parent companies, 24% take it as marketing and

advertising strategies which appeal to the mass population while 40

% think it is all due to the above mentioned reasons that BAJAJ

ALLIANZ is a famous company.

8. Are you satisfied with your existing policy/policies?

Out of 50 interviewed, 69% of the people were satisfied with their

life insurance policies while only 31% of people were not satisfied.

ANALYSIS

Analysis of a research project is based on the primary data and

secondary data which is being collected from various sources to take

out some conclusions of the research study being taken. In my project

my purpose was to find the market credibility of BAJAJ Allianz

among various other private life insurance companies. For this a

population of 50 people was being interviewed having different

lifestyles, different incomes, different occupations yet the point which

was kept in mind was that this interviewed population was insurable.

The questionnaire filled up by people revealed that nearly 36 people

i.e. about 72% people have life insurance policies. This is due to the

fact that people now have started realizing that life is very uncertain

and it is advisable to have a life insurance policy. Nearly, 24 %

people had LIC policy and 20% people have BAJAJ Allianz as their

life insurance policy. The reason that people have more LIC policy

is that it is an old company for life insurance and secondly it is a

government controlled organization. Secondly, when enquired about

the perception of people about insurance policies, nearly 39 people

i.e. about 78% people see it as a security option for their families

financially so that if they are not alive some day, their family does

not go in vain. While 11 people i.e. about 22% people see it an

investment option to save taxes and get returns. Thirdly, when asked

about their investments in various alternatives, 18 people gave life

insurance policies their first preference for investment whereas 16

gave shares as their first preference followed by mutual funds (12)

and lastly government bonds. This clearly shows that people are risk

averse to a large extent as largest numbers of people like to invest in

life insurance policies to make sure that there is security. Fourthly,

when they were asked about the criterion of choosing a life

insurance company 15 people replied that they see the security point

of view to buy a life insurance company. 5 people chose time span

as the criteria to choose a life insurance company. 2 people chose

the market share of the company as the preferred criteria of choosing

the life insurance company. 8 people chose the returns of life

insurance companies as the criteria for choosing a life insurance

company. Nearly, 20 people chose all the above mentioned reasons

to choose a life insurance company.

When the sample population was interviewed about their 1st

preference among the pvt. Players, nearly 46 % people chose BAJAJ

Allianz as the 1st insurance company, 24 % people chose ICICI

Prudential as the 1st preference, and 16 % chose HDFC as the 1st

insurance company and 14 % people chose Birla Sun life as the 1st

preferred company. When sample size was asked about safety ness

of an insurance policy as compared to LIC policy nearly 62 %

people replied that they do not find private life insurance companies

as safe as LIC, this is due to the fact that LIC had monopoly into life

insurance till 2000. Only after 2000, private companies have come

in the field of Life Insurance Company. Proceeding further, when

sample population was asked to recognize the punch line of BAJAJ

Allianz nearly 60 % of the population was able to recognize the

punch line of BAJAJ Allianz which clearly indicates that BAJAJ

Allianz is a well known life insurance company among the people.

Followed by it, when sample size was interviewed about the reasons

of famousness of BAJAJ Allianz 16 % of people chose its policies

as the reason for its famousness, 20% people chose its parent

companies as the reason for its popularity, 24 % agreed for its

marketing and advertising strategies to be the prime cause of its

popularity among masses. Whereas 40 % population agreed to all of

the above mentioned reasons to be causes of the popularity of

BAJAJ Allianz. When asked about the satisfaction with the existing

insurance policies nearly 69% people said that they are satisfied with

their policy whereas only 31% people were not satisfied with their

policy.

They wanted the additional features of transparency about the

returns after when they have stopped paying the premiums. Also

they wanted higher rate of returns at the end of payment of

premiums.

DIFFICULTIES FACED

Following were the difficulties faced during the completion of

project:

Non filling up of certain questions of the questionnaire which

led to the cancellation of that particular questionnaire.

Non understanding of certain parameters in the questionnaire.

Taking a sample size of 50 people does not reflect the mindset

of all kinds of people from different backgrounds, different age

groups and income groups.

Again research study of 2 months is a time constraint and covering

whole of Delhi population by taking a sample size of 50 is not

feasible.

FUTURE GROWTH & SUGGESTIONS

BAJAJ ALLIANZ, in the present scenario is growing at an aggressive

pace. The company does a lot of survey & analysis in the market to

discover customer’s needs & expectations & tries to improvise on its

existing market linked plans along with insurance policies. In addition

to this , the company from time to time keeps on introducing various

new policies & tailor made plans exclusively to cater peoples’ financial

needs. This has enabled BAJAJ Allianz to become market leader in

the sector of insurance & investment companies since 2001 when it

came into existence.

Since, now many other companies are joining the field of insurance &

investments, it will be necessary for BAJAJ Allianz to vigorously pursue &

update its survey & analysis policy to remain market leader. Simultaneously,

it should discover & rediscover its strength by introducing new plans better

suited to the people at large. India is a very big market & it can provide

sustenance to all the companies in the field of insurance & investments but

to remain one of the leading companies, BAJAJ Allianz has to adopt new

strategies earlier than others. This could include widening the distribution

networks to all parts of the country & catering to every income group.

Furthermore, it can improvise on its advertisements & promotion campaigns

by becoming more appealing & making them touches the hearts of millions

& billions of Indians who are the hot prospects. Lastly, the students in the

professional courses, apprentices, trainees may be good targets to approach

in times ahead.

CONCLUSION

The research project titled as “MARKET CREDIBILITY OF BAJAJ

ALLIANZ AMONG OTHER LIFE INSURANCE COMPANIES”

enabled to understand the competition among the various life insurance

companies which have entered Indian market of life insurance after 2000

when private life insurance companies were allowed to enter the Life

insurance sector in India. BAJAJ Allianz is one of the companies in the

private sector which are doing exceptionally good in this sector due to their

policies to which people find very attracting according to their needs. When

people were interviewed about the first preference among the private life

insurance companies nearly 46% replied for BAJAJ Allianz, this clearly

indicates that BAJAJ Allianz is quite a household name. The reasons for this

are many like it is a company with very strong brand names: BAJAJ Auto

Limited which is the no. 1 Automotive Manufacturer in India also Allianz

AG is 3rd largest life insurance company in the world. The market share of

BAJAJ Allianz also around 34% among private life insurance companies

which is quite high among private life insurance companies. It is only

second to LIC in the life insurance sector.

But if there are people accepting BAJAJ Allianz, there are people who

are still hesitant to take up private insurance company’s policy this is

due to the fact that LIC is a government organization. It can be seen

from the study that people have started recognizing BAJAJ Allianz as a

life insurance and hence it will grow at a much faster pace in the future.

BIBLIOGRAPHY

Philip Kotlar, Marketing Management, New Delhi, Pearson

Education (P) Ltd., Indian Branch, 2004.

C.R. Kothari, research Methodology, New Delhi, New Age

International (P) Ltd.

WEBSITES

www.bajajallianzlife.co.in

www.icici.com

www.lic.gov.in

www.hdfc.com

www.kotak.com

www.birlasunlife.com

www.aviva.com

http://www.aviva.com/

http://www.birlasunlife.com/

http://www.kotak.com/

http://www.hdfc.com/

http://www.lic.gov.in/

http://www.icici.com/

SYNOPSIS

OF

PROJECT REPORT

Submitted By

Hemant SanadhyaHemant Sanadhya

ROLL No. 306ROLL No. 306

BBA BBA III YEAR III YEAR

Documents

Bajaj Allianz